1 E816argc 1 UNITED STATES DISTRICT COURT 1 SOUTHERN DISTRICT OF NEW YORK 2 ------------------------------x 2 3 NML CAPITAL, LTD., et al., 3 4 Plaintiffs, 4 5 v. 08 CV 6978 (TPG) 5 6 THE REPUBLIC OF ARGENTINA, 6 7 Defendant. 7 8 ------------------------------x 8 9 New York, N.Y. 9 August 1, 2014 10 11:00 a.m. 10 11 Before: 11 12 HON. THOMAS P. GRIESA, 13 13 District J udge 14 14 15 16 APPEARANCES 17 17 DECHERT LLP 18 Attorneys for Plaintiff NML Capital, Ltd. 18 BY: ROBERT A. COHEN 19 19 20 FRIEDMAN KAPLAN SEILER & ADELMAN LLP 20 Attorneys for Interested Parties Aurelius Capital Partners 21 and Blue Angel 21 BY: EDWARD A. FRIEDMAN 22 DANIEL B. RAPPORT 22 23 23 GIBSON DUNN & CRUTCHER LLP 24 Attorneys for Plaintiff NML Capital, Ltd. 24 BY: MATTHEW D. MCGILL 25 SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 2 E816argc 1 APPEARANCES file:///F|/My%20Documents/Transcript%20of%20hearing%20e816argc.txt[8/1/2014 7:20:04 PM] 2 2 MILBERG LLP 3 Attorneys for Varela plaintiffs 3 BY: MICHAEL C. SPENCER 4 4 5 DAVIS POLK & WARDWELL LLP 5 Attorneys for Citibank 6 BY: KAREN E. WAGNER 6 7 7 LATHAM & WATKINS LLP 8 Attorneys for the Euro Bondholders 8 BY: CHRISTOPHER J . CLARK 9 9 10 REED SMITH LLP 10 Attorneys for The Bank of New York Mellon, as Indenture 11 Trustee 11 BY: ERIC A. SCHAFFER 12 EVAN K. FARBER 12 13 13 LEVI LUBARSKY & FEIGENBAUM LLP 14 Attorneys for J PMorgan Chase Bank N.A. 14 BY: ANDREA LIKWORNIK WEISS 15 15 16 MORGAN LEWIS & BOCKIUS LLP 16 Attorneys for Clearstream Banking 17 BY: MARY C. PENNISI 17 18 18 GREENFIELD STEIN & SENIOR LLP 19 Attorneys for Euroclear Bank 19 BY: PAUL T. SHOEMAKER 20 20 21 GOODWIN PROCTER LLP 21 Attorneys for Plaintiff 22 Olifank Fund Ltd 22 BY: ROBERT D. CARROLL 23 24 25 SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 3 E816argc 1 APPEARANCES 2 3 CLEARY GOTTLIEB STEEN & HAMILTON LLP 3 Attorneys for Defendant 4 BY: CARMINE BOCCUZZI, J R. file:///F|/My%20Documents/Transcript%20of%20hearing%20e816argc.txt[8/1/2014 7:20:04 PM] 4 J ONATHAN I. BLACKMAN 5 CARMEN CORRALES 6 DANIEL POLLACK 6 Special Master 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 4 E816argc 1 (In open court; case called) 2 THE DEPUTY CLERK: In the matter of NML Capital v. The 3 Republic of Argentina. 4 THE COURT: Good morning everyone. 5 I felt that in view of the events this week there 6 should be a meeting in court to clarify where we go from here. 7 This week the Republic of Argentina did not make the payments 8 of interest to what we refer to as the exchange bondholders. 9 That meant that there was no invocation of the pari passu 10 provision and certain requirements which would have to be 11 carried out if the payment to the exchange bondholders had been 12 made. Such payment was not made. 13 Now, whether that is called a default in language 14 which bears upon the interests of insurance companies, etc., 15 that is not a matter that I want to get into as far as 16 definition and linguistics. The main thing is the payment of 17 interest was not made to the exchange bondholders. However, 18 the obligations of the Republic of Argentina remain, and I say 19 "obligations," plural, and I want to come back to that. But 20 what occurred this week did not distinguish or reduce the 21 obligations of the Republic of Argentina. We did not have a 22 bankrupcy proceeding or an insolvency proceeding or anything 23 which would remove or change the obligations. 24 Now, the Republic has issued public statements which 25 have been highly misleading and that must be stopped and I am SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 file:///F|/My%20Documents/Transcript%20of%20hearing%20e816argc.txt[8/1/2014 7:20:04 PM] 5 E816argc 1 counting on their counsel, Cleary Gottlieb, to monitor that and 2 to stop that or help stop that by giving good advice to their 3 client. 4 What I have in mind is this: The Republic has two 5 basic contractual obligations, debt obligations. Two. Not 6 one, but two. The first is the obligation to the parties who 7 exchanged their bonds for new bonds and those exchanges 8 occurred in 2005 and 2010. The second obligation is the 9 obligation to the parties who did not make exchanges, who I 10 believe either have judgments or are entitled to judgments and 11 for shorthand purposes today I will call them "judgment 12 creditors." The obligation to the judgment creditors is their 13 -- I almost, and then I stopped myself, I almost talked about 14 something like the importance of the substantiality. That is 15 not anything for the Court to discuss. These are obligations, 16 judgment creditor obligations, and they are there. So the 17 Republic has two kinds of obligations that are essential for 18 purposes of the discussion now: first, the obligation to the 19 exchange bondholders; and, second, the obligation to the 20 judgment creditors. 21 Now, what has occurred in recent times are public 22 statements of one kind or another in which the Republic talks 23 about its willingness and desire to pay its debts, but in those 24 public statements only one of the debts is talked about. Maybe 25 there is some indirect cryptic reference to something else, but SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 6 E816argc 1 the thing that is talked about are the obligations to the 2 exchange bondholders, and the Republic lays emphasis on its 3 willingness and desire to pay those exchange bondholders, 4 obviously pay the interest to them. All of that, as presented 5 by the Republic in public statements, is highly misleading. 6 In the first place, half-truths are not the same as 7 the truth. People who take an oath on the witness stand swear 8 to tell the whole truth. So half-truths are false and 9 misleading and that is what has been going on in the public 10 releases of the Republic of Argentina. The Republic has talked 11 about, with considerable emphasis and so forth, its readiness 12 and willingness to make payment of its debt, but all it is 13 talking about is the payment to the exchange bondholders. To 14 put it in simple language, that is a half-truth. Half-truths 15 do not comply with the law, which requires disclosure of facts. 16 Any disclosure of facts about the obligations of the Republic 17 of Argentina must talk about the two obligations that the 18 Republic has. Anything short of that is false and misleading, 19 and I am counting on the counsel for the Republic to take steps 20 to stop the false and misleading material issued by the 21 Republic. Obviously the Republic can disagree with the Court, 22 can criticize the Court. I am talking about factual 23 misrepresentations, and that must stop. file:///F|/My%20Documents/Transcript%20of%20hearing%20e816argc.txt[8/1/2014 7:20:04 PM] 24 Now, I want to go into a little history. The reason I 25 am doing it is that in the history of this litigation, which SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 7 E816argc 1 goes back 10 or so years, the law has been applied. Why do I 2 even talk about such a thing? The reason is to make sure that 3 we have a little idea of the history of the application of the 4 law in the case and that we continue applying the law in the 5 case. Maybe that does not need to be said, but I think a 6 little history would be in order. 7 After the default in around 2002, judgments were 8 entered pursuant to the agreement that such agreements would be 9 entered in the event of a default. So there were people to 10 whom the Republic owed money who had rights accruing at that 11 time and certain rights were reduced to judgments, some not 12 quite so soon and so forth. But there were the creditors who 13 had their rights that accrued at the time of what is admittedly 14 a default that occurred around 2002. What occurred after that 15 was various efforts by the plaintiffs to recover on their 16 judgments and this took the form of efforts to find what could 17 be considered to be assets of the Republic and efforts to in 18 effect execute on those assets. One prominent illustration of 19 that was the fact that -- I think I have this right, if not 20 subject to minor correction -- the Central Bank had a deposit 21 with the Federal Reserve of about a hundred million dollars and 22 the plaintiffs sought to recover that and apply it to their 23 judgments, contending that the Central Bank was the alter ego 24 of the Republic and so forth. I held in favor of the 25 plaintiffs and I was reversed by the Court of Appeals. So that SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 8 E816argc 1 effort failed. 2 Other efforts were made through the years to find 3 assets which could be taken and applied to the judgments, and 4 on each occasion the Republic invoked the law in order to 5 defeat those efforts. The Republic was in court with briefs 6 and arguments invoking the law to defeat the efforts of the 7 plaintiffs to recover on their judgments either in the District 8 Court or the Court of Appeals or both. The Republic was 9 largely successful. More than largely. I think it was 10 successful except in one small instance. The reason I mention 11 this is that the Republic was in court repeatedly over those 12 years invoking the law. There was no name calling. There was 13 simply a professional process in several cases, several 14 instances to brief and argue the law and the facts in a 15 thoroughly professional way. 16 Now, a major change occurred, and I think it started 17 around 2010, and that is that the plaintiffs invoked what is 18 known as the pari passu theory or clause or whatever it was, 19 meaning that if the Republic was making payments to certain file:///F|/My%20Documents/Transcript%20of%20hearing%20e816argc.txt[8/1/2014 7:20:04 PM] 20 classes of creditors, the pari passu clause required some 21 payment under that clause or that theory to the plaintiffs. I 22 won't try to get into technicalities or definitions or ratios 23 or anything, but that was the basic idea. If the Republic was 24 making payments to exchange bondholders, the pari passu clause 25 or concept required some payment pari passu to the plaintiffs. SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 9 E816argc 1 The District Court held that the pari passu concept did indeed 2 apply under the existing contractual arrangements as they were 3 phrased and drafted and the Court of Appeals affirmed. This 4 produced a very large change in the handling of the various 5 claims of the various parties. 6 Unfortunately during the eight or ten years or so 7 before the appearance in our discussions of the pari passu 8 clause, the Republic had treated the judgment creditor debt as 9 basically nonexistent. There were statements of high 10 officials, and I think there was even some legislation in the 11 Argentine Congress, to the effect that debt would not be paid. 12 This was most unfortunate because it was lawless. The judgment 13 debts were valid debts validly entered pursuant to the original 14 contractual provisions in the bonds. So to treat those 15 judgment debts in the way the Republic did was lawless. But we 16 arrived at a new regime with the pari passu matter being a very 17 important part of the consideration of the parties and the 18 Court, so things changed. 19 On November 21, 2012, the Court entered an order 20 carrying out previous rulings of the Court and rulings of the 21 Court of Appeals in which there was a provision carrying out 22 what I described, and in the form of a provision, that in the 23 event of payment by the Republic to the exchange bondholders of 24 interest or principal, there would need to be payment under the 25 pari passu provision to the plaintiffs. SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 10 E816argc 1 Now, I have talked about the Republic's reliance on 2 the law and I didn't really need to do that, but the thing that 3 to be emphasized is that the law was put into effect in dealing 4 with the relationship between the Republic and its bondholders 5 on the one hand and the plaintiffs with their rights under the 6 pari passu concept on the other hand. That sounds awfully 7 complicated, but basically what is required is to deal with two 8 sets of rights. Obviously people who exchanged their bonds and 9 should be paid interest by the Republic have their rights; but 10 the people who have a judgment or judgment creditors and have 11 judgments have their rights. J udgments confer rights. Should 12 that need to be said? Yes, it needs to be said because the 13 Republic in both practice and in public statements has 14 attempted to ignore that. 15 Now, what was going to be done with the various file:///F|/My%20Documents/Transcript%20of%20hearing%20e816argc.txt[8/1/2014 7:20:04 PM] 16 obligations of the Republic and the rights of other parties? 17 What was to be done with all of that? There weren't going to 18 be anymore judgments. We're not dealing with new lawsuits. 19 We're dealing with recovery on judgments in lawsuits or 20 recovery on settlement agreements. So what was going to be 21 done? Well, if the Republic had wanted and had been able to 22 pay off all of its obligations, that would have ended things 23 there, but that was not going to happen. Consequently, it was 24 evident that the only thing that would resolve the problems 25 created by the various rights and obligations was an attempt to SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 11 E816argc 1 reach a settlement. It was the only avenue. 2 I should say I got word somehow that the Republic 3 wanted to send up a delegation to meet with me about 4 settlement. Well, as a judge, I could not do that because I 5 might be talking about settlement one day and having to make a 6 ruling the next day. So it is out of the question for me 7 personally to get involved in settlement. But the idea of 8 settlement was of course a good one. What I did was to appoint 9 a special master to deal with settlement discussions, Daniel 10 Pollack. He has done so. He has worked with the parties for 11 some weeks now to try to work out a settlement. He is a highly 12 competent attorney and, despite some absolutely fallacious 13 references in some forms of the press, he is completely 14 impartial. If he weren't, I would remove him or I would have 15 never appointed him. But he is completely impartial and has 16 demonstrated his impartiality in trying to work with the 17 parties to come up with a settlement. 18 No settlement was arrived at as of this week, as of 19 J une 30, not for want of a great deal of hard work on the part 20 of the Special Master. Where does that leave us? It leaves us 21 to keep going. The debts are not extinguished. There is no 22 bankruptcy, no insolvency proceeding. The debts are still 23 there. The obligation and really the desirability of having 24 interest payments made to the Republic's exchangers is there. 25 The obligation and really the desirability of dealing with the SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 12 E816argc 1 lawfully acquired judgment debts or the lawfully acquired 2 judgments -- judgments -- all of that should be dealt with. It 3 can't be left hanging. What is to happen, another 10 years of 4 irresolution? No. 5 Consequently, I want to make it clear that the order 6 appointing Daniel Pollack as special master is still in effect. 7 The requirement of the parties to cooperate with him contained 8 in that order is still in effect, and nothing that has happened 9 this week has removed the necessity for working out a 10 settlement and working with Mr. Pollack to effectuate such a 11 settlement. file:///F|/My%20Documents/Transcript%20of%20hearing%20e816argc.txt[8/1/2014 7:20:04 PM] 12 Everyone in this court knows that sometime somehow 13 these issues will be settled. That is what happens in the 14 legal world. But it is very important to proceed as promptly 15 as possible with that. It is important to get the people who 16 are owed interest on their exchange bonds, get them paid. It 17 is important to have the rights of the judgment creditors 18 taken care of. But it is not a matter of saying, as the 19 Republic does, We're ready to pay the interest to the 20 exchangers, as if that were the end of the story. It is not 21 the end of the story. There is law which comes into play, law 22 which comes into play which imposes certain requirements. The 23 Court of course is not going to depart from the law, but within 24 the law there can be a settlement. 25 So the purpose of the Court is simply to keep going in SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 13 E816argc 1 the work that is necessary to resolve the issues and not stop. 2 MR. BLACKMAN: Your Honor, J onathan Blackman on behalf 3 of the Republic of Argentina. We appreciate everything that 4 the Court has said. I assure the Court, and anyone who is 5 listening, that the Republic of Argentina is committed to a 6 process of dialogue. We agree with the Court that ultimately a 7 settlement is the only way to resolve all of this. I want to 8 make some remarks to just put the Republic's position on this 9 into perspective for the Court. 10 First, the Court mentioned and defined the class, if 11 you will, "judgment creditors." That group, which is often 12 called "holdouts," actually consist of persons who hold 13 judgments and persons who have claims but do not yet have 14 judgments. I think when your Honor said everyone is already 15 here, unfortunately that is not true. This week alone two new 16 complaints were filed by holdouts. In those complaints, among 17 other things, there were requests to enforce their alleged pari 18 passu rights. So we have said from the beginning that what is 19 needed is a resolution not just with these plaintiffs -- 20 obviously there needs to be a resolution with them -- but with 21 the entire group of holdouts whose claims are roughly estimated 22 with interest at approximately $20 billion and all of of them 23 are at least asserting the same pari passu rights. What makes 24 it so difficult is your Honor said that pari passu meant "some 25 payment," but unfortunately the Court's ruling, as affirmed by SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 14 E816argc 1 the Court of Appeals, makes some payment equal 100 percent 2 payment. We all know that 100 percent can't be a settlement, 3 but that is a quite heavy hammer to be wielding and it needs to 4 be somehow addressed in the context of a settlement discussion. 5 That is one major issue and one major constraint on the 6 settlement process. 7 The other is the RUFO clause, which we have discussed. file:///F|/My%20Documents/Transcript%20of%20hearing%20e816argc.txt[8/1/2014 7:20:04 PM] 8 The fact that for the Republic even to make any offer to the 9 holdout universe until the end of this year would trigger RUFO 10 rights on behalf of that other group that the Court mentioned, 11 the exchange bondholders. As the Court rightly said, the 12 Republic has obligations to them, and those obligations until 13 the end of the year are not simply to pay interest when due, 14 but also to respect the RUFO clause. So we really have a 15 situation where the old image of upper and nether millstone 16 crushing is very real, because we have engaged with the Special 17 Master over the last weeks in extensive discussions, the 18 Minister of Economy of Argentine has come New York several 19 times, the Attorney General of Argentina has come to New York 20 several times, and these are unprecedented actions in the world 21 of sovereign debt. The government of Argentina has sought to 22 find a solution in the time available, which is really very 23 short. Given the global and potential pari passu claim (upper 24 millstone) and the RUFO (nether millstone), we couldn't get 25 there; but we intend in good faith to pursue this dialogue, SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 15 E816argc 1 which has to be a dialogue that actually does resolve all of 2 this. It is not enough to say, Well, let's just sort of reach 3 an agreement, even if we could, with these four plaintiffs. It 4 has to be global and it has to involve all of the debt, 5 including obviously meeting obligations to the exchange 6 bondholders and also dealing with pending and an everyday 7 increasing number of claims in this court and claims that have 8 not been brought. Everyone I think is going to do their best 9 to get there. 10 I have to raise another point, which is supported and 11 instructed by my client to do so, so I will do so. These are 12 the instructions of the Republic of Argentina. At the end of 13 the discussions on Thursday, the Special Master issued a press 14 release, which I think was unfortunate. It was unlike other 15 press releases, obviously not in consultation of the parties 16 and certainly not in consultation with my client. The Republic 17 of Argentina believes that it does not give a full picture of 18 the situation and that it was frankly harmful and prejudicial 19 to the Republic in its impact on the market, in the situation 20 that it created for other persons such as holders of credit 21 default swaps. That has caused deep concern, which I have been 22 instructed to convey to the Court. Obviously a dialogue with 23 an intermediary appointed by the Court has to be one that is 24 conducted with full confidence and openness, and I have been 25 instructed to inform the Court that the Republic of Argentina SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 16 E816argc 1 no longer has that confidence in the process as currently 2 constituted under the Special Master and would ask the Court to 3 consider other means of facilitating dialogue because dialogue file:///F|/My%20Documents/Transcript%20of%20hearing%20e816argc.txt[8/1/2014 7:20:04 PM] 4 is critically important. The dialogue does require trust. It 5 is the trust that brought the Minister of Economy here on 6 several occasions and has been in, I think, almost daily 7 contact with the Special Master and has brought the Attorney 8 General here. We need to have a feeling of confidence in going 9 forward with this process to which the Republic is very much 10 committed. 11 Thank you. 12 THE COURT: You made very valid points, which we all 13 take very seriously. Before I respond any further, I will be 14 back to you, Mr. Blackman. 15 MR. COHEN: Robert Cohen from Dechert for plaintiff 16 NML. For these purposes, I am speaking for all of the 17 plaintiffs. 18 We were going to come here this morning, your Honor, 19 and ask you to do exactly what you have directed, that the 20 negotiations that have been conducted by Special Master Pollack 21 continue. We're hopeful that a resolution can be reached. 22 Mr. Pollack has managed after 13 years to get the parties in 23 the same room. Only in the last three days did that happen, 24 notwithstanding about four weeks of discussions. We actually 25 sat in the same room with the Minister of Economy and had a SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 17 E816argc 1 dialogue. The only reason that the Republic has now objected 2 to continuing with Mr. Pollack is the press release that merely 3 recorded the facts. He reflected the circumstances and the 4 fact that default has occurred. The Republic wants to 5 characterize these events as a technical default because they 6 attempted to make an illegal payment to the Bank of New York. 7 The fact is, and the world knows, that they are in default. To 8 choose another mediator at this crucial moment would derail 9 what we think has been effective negotiations. We urge you not 10 to replace the Special Master. We think that any difficulties 11 can be overcome very quickly. 12 With respect to the other issues that Mr. Blackman has 13 raised that we need to deal with, the whole universe of other 14 issues, I think we ought to let the Special Master resolve the 15 matters that are before him and we have a strong expectation 16 that the rest will follow if we can do that. 17 Thank you. 18 THE COURT: Let me respond to both of you. I know of 19 nothing that the Special Master has done except to negotiate 20 with the parties and he has made progress. Something had to be 21 said to the public. If the word "default" was used, well, it 22 can hardly be said to be inaccurate when payments were due to 23 exchange bondholders, payments of interest, and such payments 24 were not made. So it is hardly anomalous to call that a 25 default. SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 18 file:///F|/My%20Documents/Transcript%20of%20hearing%20e816argc.txt[8/1/2014 7:20:04 PM] E816argc 1 What I have done today, and Mr. Blackman was very 2 gracious about indicating the cooperation to do what I talked 3 about, and that is regardless of what happened at midnight or 4 didn't happen at midnight Wednesday, or whenever the day was, 5 regardless of that, regardless of whether it is called a 6 default or not, regardless of that, the important thing -- the 7 important thing -- is that the obligations remain and have to 8 be dealt with. That is the essential thing. There is no 9 reason whatever to even contemplate bringing somebody in as a 10 new special master. I am not sure that Mr. Blackman even 11 voiced such a thing, but I suppose it was implied. That would 12 be about as poor a way to administer a court as I could even 13 conceive. 14 Now, if -- I am sure this is true -- Mr. Blackman is 15 talking about the desires of his client to negotiate in good 16 faith, the only sensible way to do that is to go forward in the 17 path that has been started, and let's cool down any ideas of 18 mistrust or whatever. What can be trusted is facts. What can 19 be trusted is proposals. What can be trusted is 20 recommendations. That is what is important. This is not a 21 personality contest or anything like that. This is a matter 22 where substance is important and substance is difficult. So 23 let's get back to work on matters of substance, and I will 24 expect to hear that you are back to work. 25 With that, we will adjourn our hearing. SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 19 E816argc 1 MR. COHEN: Thank you, your Honor. 2 THE COURT: Wait a minute. One minute. One minute. 3 I think I left something out. 4 I have signed a jointly proposed order and copies are 5 available. Thank you. 6 MR. FARBER: Your Honor, what is the subject matter of 7 the order? 8 THE COURT: Regarding Clearstream and Euroclear. 9 MS. WEISS: Your Honor, before the Court adjourns, may 10 I be heard briefly on behalf of J .P. Morgan with respect to the 11 order that the Court has signed? 12 THE COURT: Sure. 13 Sit down everybody, please. 14 MS. WEISS: Thank you, your Honor. My name is Andrea 15 Weiss. I represent J .P. Morgan. 16 J .P. Morgan has also filed a letter request for 17 clarification with respect to the Court's orders relating to 18 the payment of the Argentine local law U.S. dollar bonds. The 19 order that the Court signed today would permit Citibank, 20 Euroclear, and Clearstream to pay on those bonds. However, the 21 order that the Court signed does not give J .P. Morgan that 22 permission. In fact, it limits payment to Citibank, Euroclear, 23 and Clearstream. J .P. Morgan is a downstream payer and will 24 get some portion of those funds, and we would request that the file:///F|/My%20Documents/Transcript%20of%20hearing%20e816argc.txt[8/1/2014 7:20:04 PM] 25 Court make clear in an order that downstream payers of the SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 20 E816argc 1 Argentine local law U.S. dollar bonds can be paid. 2 THE COURT: Let me say this: I will be back in the 3 office on Monday. Be in touch with my law clerk about what you 4 need. That is all I can say. I don't want to do anything more 5 today. 6 MS. WEISS: We'll do that, your Honor. We'll try to 7 submit a proposed order on consent. 8 THE COURT: Thank you. 9 MS. WEISS: Thank you. 10 o0o 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300